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LAS VEGAS-Kapex LLC, the group that last month acquired a 3,250-acre chunk of the 10,000-acre Apex Industrial Park envisions a major big-box warehouse and distribution center rising on the property over the next 10 years. The group expects to have development-ready lots available within 12 months and also plans to develop buildings on a speculative basis.
The face of the group is Adam Titus, most recently with VesCorp., the company that created the industrial park and still owns 6,000 acres of it. "I still have some ownership in the rest of Apex Industrial Park, but am no longer involved with VesCorp," says Titus, who was out of the country when GlobeSt.com reported the story last month.Kapex paid $69 million for its piece of Apex Industrial Park, which lies a dozen miles northeast of Las Vegas on I-15, beyond the Las Vegas Motor Speedway. Kapex's land, which is near I-15 and US 93, could hold an estimated 30 million sf of buildings. While further out Interstate 15 than most existing industrial parks in the region, Titus says there is pent-up demand for this type of product in the marketplace today and Kapex's cost basis in the land is much lower than most.
"We should be able to be very competitive," he says. "If we can lock down our land cost today--at a price that already represents a value--and develop it over 10 years, every year our bottom line gets better."
There has been talk locally that Kapex would need additional water rights to develop the property. Titus tells GlobeSt.com that along with the property Kapex acquired rights to 400-acre feet of lake water, "which will be plenty of water for us to develop a big-box warehouse-distribution industrial park on the whole property."
Kapex acquired its land from Kerr-McGee, which acquired the property in 1989. Kerr-McGee shuttered operations at the Apex site in 2001. The sale to Kapex was brokered by Pat Marsh of Colliers International. Marsh told GlobeSt.com last month that Kerr-McGee got its asking price and that Kapex was assigned a purchase option held by a third party.
Kapex will focus initially on developing 400 acres that the seller, Kerr McGee Corp., was actively using. The plan is to have lots ready for sale to developers and users within 12 months, at which time Kapex also plans to be speculatively developing some warehouse-distribution space. As part of the plan, Kapex will be developing an on-site wastewater treatment plant. Titus says there is already power, natural gas and communications on site.
In addition to Titus, Kapex partners include Dave Carver, Jerry Snyder and Ken Templeton.
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